Childcare vouchers - higher tax payer, taking a break

AnnaV

Hello,

I have to take a break on my childcare vouchers of 9 months due to maternity leave. Does anyone know if I can do this without losing my £55 a week entitlement?

Thank you

GobbledyGook

Will you be receiving more than SMP? If not look into it because employers have to continue with benefits while an employee is on SMP.

onlyroz

DON'T take a break - your employer has to carry on paying the vouchers while you're on SMP.

SkintGypsy

My vouchers accrued in my absence, leaving me a nice sum to cone back to. Good job, since I work a month in hand, my nursery is paid in front, and my first part time wage was low as a transition between SMP and normal pay. Would have been royally stuffed without it!

AnnaV

Unfortunately I am not contractually entitled to them so no, that won't apply in my case.

Judith_W

1. CCVs are a 'non cash benefit' so as a result of the amend to the discrimination act in Oct 2008, if you have them before you go on mat leave they should continue to provide even if you do not have salary to take them from.

2. In answer to your question, provided you do not leave the scheme for more than a 12 month period, the old rules apply. So eg, if you last payment in May 2011, provided you have CCVs in May 2012, you should be OK.

Rockporkchop

You will still be entitled to £243 per month but the rules are changing in April so the tax saving will be a lot less for higher rate taxpayers who are not already in a scheme. Can you possibly keep the voucher scheme going during maternity leave with a nominal sum of say £5-£10 per month?

onlyroz

AnnaV wrote: »

Unfortunately I am not contractually entitled to them so no, that won't apply in my case.

I am fairly sure this is not the case. Your employer will not be allowed to take the vouchers out of your maternity benefit - they can only take them out of an actual salary. So unless they pay you a "top up" salary over and above your maternity benefit, they will have to pay your childcare vouchers on your behalf.

Ama

AnnaV wrote: »

Unfortunately I am not contractually entitled to them so no, that won't apply in my case.

Anna, if you had to give up part of your salary in exchange for childcare vouchers, then you will continue to be entitled to the vouchers throughout your maternity leave.

It would be unwise to opt out at this stage because when you join after 6 April 2011, you will be classed as a new joiner so the new changes would be applicable to you. If your scheme is a salary sacrifice scheme, then contractually, you are entitled to the vouchers!!!

I run a childcare voucher scheme and also deal with maternity leave for a large employer so this is a very familiar territory for me.